San Anton Resource Corporation (TSX:KMN) is an an exploration and development company that is listed on the Toronto Stock Exchange and is totally focused on the mining friendly jurisdiction of Mexico. The Company’s principal asset is a 64% interest in the San Anton Property (Goldcorp 36%), which hosts the near-surface Cerro del Gallo gold-silver-copper deposit. The Property is located in a historic gold-silver mining district and has only recently been subjected to modern exploration techniques. This work quickly identified several targets and has led to the delineation of a NI 43-101 Mineral Resource of 4.5 million ounces of gold, 202 million ounces of silver, and 1.4 billion pounds of copper. The deposit remains open in several directions. Within the overall deposit, there is a ‘gold domain zone’ containing Measured & Indicated Mineral Resource of 3.2 million ounces of gold and 71 million ounces of silver, and within this zone, there is a higher grade heap leachable gold resource defined at surface. Corporate Merger Plans San Anton has recently agreed in principle with Kings Minerals (ASX:KMN) to complete a business combination whereby Kings Minerals will acquire all of the issued and outstanding shares of San Anton not presently owned by Kings Minerals in exchange for two and one-half (2.5) ordinary shares in the capital of KMN for each SNN share, representing an approximately 45% premium to San Anton shareholders on the closing prices of February 2, 2010. In connection to the transaction, Kings Minerals intends to apply for listing on the TSX. The proposed business transaction is expected to be finalized by end of August 2010. For more details on the proposed transaction, see May 11,2010 press release. Cerro del Gallo Scoping Study Scoping study highlights for the Cerro del Gallo gold/silver open pit mining and heap leach/carbon-in-leach (CIL) processing project include: - US$260M net free cash flow before tax–post capital expenditure payback
- US$82M estimated initial capital investment to be paid back in 2.25 years
- US$415 per ounce average life-of-mine operating cost after silver credits
- 69.9Mt in-pit resource at 0.66g/t Au (1.5Moz) and 13.6g/t Ag (30.5Moz)
- 0.74:1 average strip ratio over 14 year mining life
- 4Mtpa initial processing rate, expanding to 5.5Mtpa
The scoping study is a ‘base case’ guide to the possible economic feasibility for the operation, using simple mining and processing techniques to generate significant cash flow within a short time frame. A full feasibility study is underway for completion by last quarter 2010. |